5 Costs To Budget For When Buying A Home | Vipon

Cost #1: Down Payment

Below is a step-by-step guide on how to budget for down payment costs.

1. Calculate your savings needed for the down payment, considering other expenses and closing costs.
2. Aim to save 10-20% of the purchase price for a standard 3.5% down payment.
3. Consider pre-approval or consulting with a lender to get an estimate of your budget.

Cost #2: Closing Costs

A list of costs associated with buying and closing on a home includes title insurance, escrow fees, and more.

• Title Insurance: $1,500 - $3,000
• Escrow Fees: 0.5% to 1% of the purchase price
• Seller's Closing Costs: varies depending on location
• "Brokerage Commission": usually 2-3% of the sale price